The issues of consolidation in construction arbitration

Produced in partnership with Mayer Brown
Practice notes

The issues of consolidation in construction arbitration

Produced in partnership with Mayer Brown

Practice notes
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This Practice Notice looks at how multiple causes of action can be consolidated and dealt with by means of a single Arbitration, focusing on construction Disputes. See also Practice Note: Multi-party and multi-contract arbitration—an introduction.

Multi-party/multi-contract disputes

Construction disputes often involve more than two parties. It is common for an employer to enter into a construction contract with a main contractor, who then sub-contracts different parts of the works to a number of sub-contractors. The result is that multiple, interconnected construction contracts are in place between various different parties on one project.

In the event of a dispute, there may be many potential causes of action under the various contracts. A single dispute may involve the employer, the contractor and a number of the sub-contractors, suppliers and consultants.

If all the contracts are subject to the jurisdiction of the court, this is easily managed by the Civil Procedure Rules and the court will ensure all the related claims are joined ('consolidated') into the same proceedings. However, where some or all of the contracts contain an arbitration

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Jurisdiction(s):
United Kingdom
Key definition:
Consolidation definition
What does Consolidation mean?

Where a company increases the nominal value of its shares and reduces the number of shares in issue by consolidating holdings. For example, five 5p shares might be consolidated into one 25p share.

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